IP505414 - Best Practice - Life-Cycle-Cost Management


Examination arrangement

Examination arrangement: Assignment
Grade: Letters

Evaluation form Weighting Duration Examination aids Grade deviation
Assignment 100/100

Course content

Many products have long lives and a significant part of the costs are incurred after sales (design, engineering, procurement, production, assembly, transportation, maintenance, repair and so on).

Cost models and analysis

Cost elements

Investment analysis

LCC as engineering tool

LCC as management tool

Learning outcome

After concluding the project the student should know the methodology and main principles of Life-Cycle-Cost Management.     

The student should be able to carry out any cost estimation task using available information, modelling uncertainty, necessary guides and books as well as understand and interpret the results.     

The student will learn about Activity-Based Costing, various Life-Cycle Costing methodologies, Monte Carlo simulations, modelling uncertainty, Economic Profit calculations as well as Net Present Value estimations.  The student will learn how to combine these approaces to produce the best overall cost management advice to a decision-maker.

Learning methods and activities

The course is given during one week, and is organized with lectures on background topics and an introduction to a case study. The case study will then be solved individually or in groups and documented in a project report. The total workload for the course is expected to be 2 weeks including independent research and literature survey supporting the project work.Grading will be based on the project report, and will assess the candidate(s) ability to interpret, familiarize, reflect and apply the course topics.

Compulsory assignments

  • Mandatory assignment

Further on evaluation

Project report (100%)

Specific conditions

Exam registration requires that class registration is approved in the same semester. Compulsory activities from previous semester may be approved by the department.

Admission to a programme of study is required:
Naval Architecture (850MD)
Naval Architecture (850ME)
Product and System Design (840MD)
Product and System Design (845ME)

More on the course



Version: 1
Credits:  3.8 SP
Study level: Second degree level


Term no.: 1
Teaching semester:  SPRING 2021

Language of instruction: English

Location: Ålesund

Subject area(s)


Contact information
Course coordinator: Lecturer(s):

Department with academic responsibility
Department of Ocean Operations and Civil Engineering



Examination arrangement: Assignment

Term Status code Evaluation form Weighting Examination aids Date Time Digital exam Room *
Spring ORD Assignment 100/100

Submission 2021-05-19

Submission 12:00

Room Building Number of candidates
  • * The location (room) for a written examination is published 3 days before examination date. If more than one room is listed, you will find your room at Studentweb.

For more information regarding registration for examination and examination procedures, see "Innsida - Exams"

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